Correlation Between Zevia Pbc and Jones Soda

Can any of the company-specific risk be diversified away by investing in both Zevia Pbc and Jones Soda at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Zevia Pbc and Jones Soda into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Zevia Pbc and Jones Soda Co, you can compare the effects of market volatilities on Zevia Pbc and Jones Soda and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Zevia Pbc with a short position of Jones Soda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zevia Pbc and Jones Soda.

Diversification Opportunities for Zevia Pbc and Jones Soda

0.0

Correlation Coefficient

Zevia Pbc  Jones Soda

Pay attention - limited upside

The 3 months correlation between Zevia and Jones is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Zevia Pbc and Jones Soda Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jones Soda and Zevia Pbc is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Zevia Pbc are associated (or correlated) with Jones Soda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jones Soda has no effect on the direction of Zevia Pbc i.e., Zevia Pbc and Jones Soda go up and down completely randomly.

Pair Corralation between Zevia Pbc and Jones Soda

If you would invest (100.00) in Jones Soda Co on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Jones Soda Co or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Zevia Pbc  vs.  Jones Soda Co

Zevia Pbc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Zevia Pbc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's forward indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Jones Soda

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jones Soda Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, Jones Soda is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Zevia Pbc and Jones Soda

The main advantage of trading using opposite Zevia Pbc and Jones Soda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zevia Pbc position performs unexpectedly, Jones Soda can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Jones Soda will offset losses from the drop in Jones Soda's long position.

The idea behind Zevia Pbc and Jones Soda Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..